LSE beefs up defence against Macquarie
The London Stock Exchange (LSE) beefed up its defence against hostile bidder Macquarie by announcing plans for a cash boost to shareholders today.
In a defence document, the LSE said its move to double the amount of capital it returned to shareholders to £510m (€745.3m), as well as increase this year’s dividend payment by 71%, demonstrated its financial strength.
LSE chairman Chris Gibson-Smith said: “Macquarie’s offer recognises none of this. It provides no value today and reflects no value tomorrow.”
Macquarie, an Australian bank with UK investments ranging from BBC Broadcast to the M6 Toll Road, is expected to hit back next week by adding 20% to its original 580p a share hostile bid, which the LSE described in January as “derisory”.
The improved offer is likely to be above 700p but still short of today’s 790p share price of the LSE following a 4% rise today. It is currently valued at just over £2bn (€2.9bn).
